The ATO on 17.12.2014, released Taxation Determinations TD 2014/22, TD 2014/23 & TR 2014/24 on the consolidation changes introduced by Pt 4 Sch 3 of the Tax Laws Amendment (2012 Measures No 2) Act 2012 (rights to future income (RTFI) and residual tax cost setting rules), which are relevant in ascertaining whether the pre-rules, interim rules, or prospective rules that apply in relation to an assessment of the head company of a consolidated group or multiple entry consolidated (MEC) group is respect of an entity (the joining entity) when that entity joins the group.
DATE OF EFFECT: The Determinations apply to years of income commencing both before and after their date of issue.
[LTN 244, 17/12/14]
TR 2014/22 – Extract (Interim Rules)
Income tax: consolidation: if the conditions in paragraph 50(3)(a) of Part 4 of Schedule 3 to the Tax Laws Amendment (2012 Measures No. 2) Act 2012 are satisfied and the interim rules apply to an assessment and, on or after 29 June 2012, that assessment was amended to alter a claim made under the original 2010 law, do the interim rules apply to the altered claim?
[Yes. The interim rules1 continue to apply to all of the claims in a notice of assessment that satisfies the requirements of paragraph 50(3)(a) of Part 4 of Schedule 3 to the Tax Laws Amendment (2012 Measures No. 2) Act 2012, 2 including any of those claims which are later altered in a notice of amended assessment served on or after 29 June 2012.]
TR 2014/23 – Extract (extent to which the ‘pre-rules apply)
Income tax: consolidation: if the conditions in subitem 50(5) of Part 4 of Schedule 3 to the Tax Laws Amendment (2012 Measures No. 2) Act 2012 are satisfied and the original 2002 law applies to an assessment, will a subsequent request by the head company to amend that assessment result in the pre rules applying, by virtue of subitem 50(6), to the entire assessment or only to the subsequent amendment request?
[1. The pre rules1 will apply, by virtue of subitem 50(6) of Part 4 of Schedule 3 to the Tax Laws Amendment (2012 Measures No. 2) Act 2012, 2 only to the extent that the subsequent amendment request alters an existing claim that relates to the application of subsection 701-55(6) of the original 2002 law in respect of the joining entity.]
TR 2014/24 – Extract (
Income tax: consolidation: if the conditions in paragraph 50(3)(a) of Part 4 of Schedule 3 to the Tax Laws Amendment (2012 Measures No. 2) Act 2012 are satisfied and the interim rules apply to an assessment and, on or after 29 June 2012, that assessment is amended to include a new claim which was not previously made in the assessment, do the interim rules apply to the new claim?
[No. The new claim will not attract the application of the interim rules,1 since it was not claimed pursuant to a notice of assessment which satisfied the conditions in paragraph 50(3)(a) of Part 4 of Schedule 3 to the Tax Laws Amendment (2012 Measures No. 2) Act 2012.]